Bond Yields Near Decades Highs Amid Inflation Fears

Global bond yields hovered near multi-decade highs on Friday due to concerns about inflation and rate hikes. The US administration's plan to impose higher tariffs on goods from 60 trading partners did not help the situation, with 30-year Treasury yields marching towards their highest since 2007.

The pan-European STOXX 600 rose 0.3% after a more than 1% drop in the last session. Nasdaq futures inched 0.1% higher, with Intel leading the charge thanks to bumper results. Tech stocks have been under pressure this week as investors grow uneasy about multibillion-dollar spending on AI that has yet to yield conclusive evidence.

The US Federal Reserve is expected to raise interest rates soon, with a one-in-three chance of a rate hike next week and over 70% priced in for September. Markets show traders believe central banks are more likely to raise borrowing costs, driven by growing expectations for the Fed to act. The dollar index was on pace for its biggest weekly jump in about a month.